Keeping track of expenses

[rebeccaterp]

Does anyone have an idea of a worksheet that helps track all that's going out and coming in?

We're sinking into a deep debt whole and I'm trying to get things back on track, somehow.


thanks!
Becca

 

[BobCDT]

Hi Becca,
Tell us more about your lab.
How many staff?
What products do you provide?
about how many units per day?
the more info the better.

 

[PCDL]

Hmm.... If you aren't using any lab tracking software, I would look at quickbooks or another "over-the-counter" solution, just to track receivables, payables, and inventory. Get the main categories down first, just so you have a big picture. I would assume that your debt (big assumption without any more input) is from a) Customers dragging their feet or not paying, b) Labor/Material cost much too high, or c) Your being robbed.

 

[rebeccaterp]

Well, here is our scenario - my husband took out a $50k loan to get the equipment he needed and the lab built.
(physical construction) - he went $10k over - which went on a credit card. (EEK!) MISTAKE #1!!

He has one employee - part time.
He has 12 clients - (how do YOU market to more??) He does all drop offs, pick ups, on his own (change to mail or FedEx?) - along with the majority of the work.

Things have been slow lately - and he is considering letting the employee go to save the $$ there.

He does partials and dentures, bleaching trays, guards, Valplast, etc.

He uses Denticon and Heraeus (sp)

I went to a credit service today b/c we are now almost $40k in debt on that credit card - unable to bridge the gap between spending and making. I am a school teacher - we have a 1.5 year old. Medical bills are also an issue - we have a car for sale to try and make up the difference a little - ugh. See where I'm going?!
Our personal finances are kept to the minimum - no frivolous "extras" to cut out. We're not tracking his work costs and spending well enough.
We keep falling short - and are throwing $$ away on that credit card.

Any and all advice is absolutely appreciated!
(be brutally honest - I can take it!!)
thank you so much.
Becca

 

[Flipperlady]

Most doctors and hospitals will let you set up a payment plan if you can't pay all at once. Don't ever put those expenses on a credit card. Your husband could get a job and keep the lab open part time for now (employee has to go unfortunately). I'd keep the car if it's paid for, you need transportation.
You can moonlight, i have a neighbor who's a teacher and she gives tutoring lessons from home. Sell the lab building and move lab to your house (build a small lab in backyard. Make payments on everything even if it's less than you are supposed to pay, it shows good faith. Do not use the credit card anymore and pay it off pronto. I'm sorry you are having a tough time, hopefully it'll get better soon.

 

[Smilestyler]

You've probably been told this already, but never put expenses on a credit card unless you have the cash already. If you have operating expenses and no $$ , put them on a line of credit from your bank. That's what they're for. Also, you might have to get firm on accounts receivable. I had that problem too a few years ago. You're paying interest on money you owe, make sure your accounts do too.

 

[user name]

Get a GOOD accountant! I get a quarterly report that shows every cent spent; very easy to read and compare. I dont use it to decide where to make cut backs though...I tell every sales person, "dont tell me is cheaper! Im not looking for more inexpensive ways of doing things. Im looking for the best products." In the time it would take me to do the numbers, I can be producing more work. My key to success has been to work more. By the hour I dont do that great, so Im thankful that I have the time and enjoy it. What does the employee do? I used to be an employer but just wasnt happy. I like being an artist rather than human relations. I just wasnt good at it.

 

[user name]

Forgot to ask the most obvious...Are you sub s or sole prop?

 

[RDA]

Can your lab handle more work? If so, I think you need to add at least eight more accounts. Stop using the credit card for purchases, it will only get you in the hole further. If you are not able to turn it around soon, then consider selling everything to decrease the debt as much as possible, and go to work for a well established lab. For the personal side of this, your marriage. I would recommend a support group outside of your family, maybe through a church group. My reason for this is finances can very damaging to a good marriage, and outsiders will be more honest than family members. I wish you the best.

 

[debubblizer.com]

I started My DEBUBBLIZER.com business like that too, i had to work for somebody else and at the same time run my debubblizer.com business. Yes, please do NOT use credit cards unless you have already $$ to pay that credit card....How long do you have your lab business???

 

[rebeccaterp]

Thank you all so much for your thoughtful responses. We are trying to market to more dentists. I am planning to pinpoint local dentists and get fee schedules delivered before school starts. He can definitely take on more work, it just seems slow right now.

You have given us a lot to think about.

Thank you

 

[RDA]

This time of year seems to slow down, annually. I believe it's due to families taking vacations, and getting ready for school to start again. So, it's not just your area.

 

[BobCDT]

Yes, in many parts of the US most of the dentists take at least 2 and even 3-4 weeks off during July and August. So production can drop 20-30% in those 2 months. I think you have some great suggestions in the posts. Obviously, you need to cut costs and increase sales.
Stop using the credit card until you can pay it in full every month.

 

[XxJamesAxX]

IMO first thing you all need to do is go to a office store and spend $150 on a quickbooks program. Get it set up and see just where your money is going. Set down, do a budget and see just what it takes for the business to break even. Figure out what the bare minimum salary your husband can draw for you to make it (at home that is) and start there. If the total income is not enough to cover bare expenses then you need more work in a hurry. Big mistake alot of new business owners make imo is paying themselves to much in the beginning.

Honestly its sad to say but if your husband currently is not working 50-60+ hours a week, then most likely he doesn't have enough work coming in, just part of being a dental tech. Unless he's a high end lab charging big prices and I'm assuming he's not.

Wish you all the best with hard work and discipline I'm sure you will turn it around.

 

[rebeccaterp]

OK - I'm planning on "splurging" on the software to track everything, BUT - how do we stop using the credit card when we need to buy supplies? I know that we are in a tough spot - and maybe closing the physical business down like someone said, might be our only option.

A disheartening option.

The credit counseling service agent from our state ran through all of the options.
We have no memberships, extras, etc. I mow our lawn, no magazines, movies out, etc.

It just seems as though our expenses continue to overshadow what is coming in.
And his days are often bombarded with unscheduled relines and repairs. He is an onsite lab for one office, and has 10 private labs sending him work.

I'm off to call the credit card company, and look for more options.

Thanks for all of your experience and advice.

 

[rkm rdt]

Those unscheduled relines and repairs should be you employees job.Rather than letting him go , maybe he could work piece work for those cases and let you and your husband focus on marketing to new accounts.Find out what they are not receiving and provide it.Maybe more repairs and relines that other labs won't do.

Can the office he works for give him some referrals?

 

[BobCDT]

OK - I'm planning on "splurging" on the software to track everything, BUT - how do we stop using the credit card when we need to buy supplies? I know that we are in a tough spot - and maybe closing the physical business down like someone said, might be our only option.

A disheartening option.

.

The credit counseling service agent from our state ran through all of the options.
We have no memberships, extras, etc. I mow our lawn, no magazines, movies out, etc.

It just seems as though our expenses continue to overshadow what is coming in.
And his days are often bombarded with unscheduled relines and repairs. He is an onsite lab for one office, and has 10 private labs sending him work.

I'm off to call the credit card company, and look for more options.

Thanks for all of your experience and advice.

I think you need a fee increase immediately. You have work coming in and can't make ends meet. If your working more than full time (40 hours) you should be making money.
By now you should have a handle on your costs to run the business. it sounds like your at the make it or broke it point. Increase your fees to meet expenses and needed income for your personal life. If you loose the work due to the fee increase it may just get you to the inevitabe resolution more quickly. If not it will help you turn it around. No reason to continue long term hard work with little or no income

 

[araucaria]

See if you can get hold of some software to show how the figures work when any single aspect of your business is adjusted, a good accountant should be able to identify a product for you.I got a package from my accountant about eight years ago that does this, and you can enter for example a 5% increase in prices and see how it impacts on all other costs. Any aspect of the business can be changed to show the impacts. I'd recommend seeing how you can raise your prices as far as possible, and identify customers that really drain your energy and resources too. Profit is the aim and understanding the numbers is vital.
A couple of books for you to look at if you can make time;
Amazon.com: The Knack: How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up (9781591842217): Norm Brodsky, Bo Burlingham: Books

Amazon.com: The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It (9780887307287): Michael E. Gerber: Books
Hope these may help

 

[budgenator]

It just seems as though our expenses continue to overshadow what is coming in.
And his days are often bombarded with unscheduled relines and repairs. He is an onsite lab for one office, and has 10 private labs sending him work.

Ah ha, I'm a on-site technician myself, and have problems like that myself and here's how I look at it; unscheduled relines and repairs are almost always money losers. You have to figure that your time is worth something, $60.00 an hour has been thrown around, so if your taking 20 minutes to do the repair, and it takes 40 minutes to pick-up and deliver the repair, you better be charging $65.00 to do the repair just to cover time and materials. Unscheduled relines are just as bad, especially same-day relines. Now think about the loss of productivity just from switching tasks, and the task your switching from is a low profit or losing task and your going from bad to worse. The pricing and availability of relines and repairs need to be premium to offices that are not sending significant profitable work.

The picture I'm getting is he's working as an independent contractor, probably leasing space in a dental offices lab and has purchased significant equipment and is responsible for lab expenses. I'll bet the home office gets a discount off list prices, and is for all practical purposes a denture mill and the contract is bordering on unconscionable.

 

[debubblizer.com]

Becca, if you do use debubblizer, i am willing to send you 1 Gallon of Russman DeBubblizer free of charge just to help you out with your lab. Maybe it sounds crazy but i will do it to help your lab and cut some $$$$ expenses.